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01 June 2014

I-Bhd invests more in property

01 June 2014

By THE STAR
I-Bhd is increasing its property investment portfolio to achieve its target of RM1bil in five years’ time.
It aims to have its property investment portfolio stand at RM1bil, with property development contributing some RM500mil to RM600mil.
Although the segment still remains smallish at only RM74mil to date, derived mainly from its data centre and 1,000 car parks, I-Bhd is proactively undertaking three key developments to reach its RM1bil goal.
The recurring income from its investment properties can be used to fund the i-City expansion, says deputy chairman Datuk Eu Hong Chew.
I-Bhd is in a joint venture with Thailand’s Central Group, to develop the RM580mil Central Plaza@i-City mall. Targeted for opening in 2017, the 1.5 million sq ft mall will be situated on a plot spanning 11.12 acres with a net leasable area of 1 million sq ft.
The company will reap some RM20mil from this deal over the next two years.
The mall will have 5,000 car park bays, which would translate into RM3.75mil in estimated monthly revenue.
The company is also working with Best Western International, the world’s biggest hotel chain to develop a three-star 216-room hotel with a gross development value of RM50mil.
Best Western will also manage its first service suite in Malaysia, namely Best Western Service Suite@i-City, by providing hospitality and building management service for 5+5 years.
I-Bhd is also constructing 6,500 car parks under its i-SoHo project, and is targeting to own 30,000 car park bays once the entire i-City project is completed in 2020.
Among other plans, is for another 400-room hotel, as well as a convention centre as part of the Central Tower development, which will be adjacent to the shopping mall.
Notably, it has already obtained approvals to subdivide part of the site meant for the mall construction, to begin the Central Tower development. The development has a GDV of RM1.2bil and an area of 1.6 million sq ft.
I-Bhd expects to see profit margins of 25% from the tower. The first phase of Central Tower will comprise two residential towers, which will be completed in 2019. The remaining two towers will comprise a hotel and offices.
Another hotel earmarked for the property investment segment will be the hotel under the iconic development The Jewel@i-City, which I-Bhd intends to launch in 2016.

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